Legality of Executive Order on Oil Revenue Remittance

The article analyzes the legality of an executive order concerning the direct remittance of oil and gas revenues to the Federation Account in Nigeria. It outlines that executive orders are official instructions issued by the President or governors and do not equate to legislation, as they bypass the approval process of the National Assembly.

The current framework under the Petroleum Industry Act (PIA) allows the Nigerian National Petroleum Corporation (NNPC) to retain 30% of oil revenue for management fees, while companies retain 20% for future investments. The article argues that the federal government’s retention of these earnings is sufficient to support NNPC's functions.

It emphasizes that the executive order does not repeal or amend existing laws and suggests that the President should challenge the National Assembly in the Supreme Court regarding the provisions of the PIA. Alternatively, it proposes introducing a bill to amend relevant sections of the PIA to avoid controversy surrounding the executive order.